Bonds - Fundamentals

By the end of this course, you will have analysed and understood the principles and organisation of the bond market:

• The origin and evolution of fixed income securities
• The players and parties involved
• The new market organisation, including the requirements of MIF 2 (MIFIR/MIFID 2)
• The basic characteristics of bonds (physical presentation, nominal value, issue price, redemption price…)
• The main explanatory variables encountered
• How bonds are issue (types of issue, mechanisms, prospectus and regulatory aspects …)
• The rights and obligations of the bond issuers and holders
• The risks of investing in bond investment and solvency criteria
• The basic elements and characteristics of the different types of bonds (fixed rate, variable rate, hybrids…)
• The principles and methods used to determine a fair bond price
• Problems encountered when measuring bond yields
• How to construct and interpret a bond yield curve and the conclusions to be drawn from it from a structural and economic point of view

• THE ORIGINS OF DEBT INSTRUMENTS
• BASIC ELEMENTS OF THE DIFFERENT TYPES OF BONDS (ILLUSTRATED WITH EXAMPLES)
  • Traditional products: fixed and floating rate bonds
  • Hybrid products: convertible and reverse convertible bonds, warrants bonds, index-linked bonds…
• IMPORTANCE OF SOLVENCY CRITERIA
  • Hierarchy of issuers
  • Notion of spread
  • Rating agencies
• cHARACTERISTICS AND EVALUATION OF RISKS ASSOCIATED WITH BONDS
• RIGHTS AND RESPONSIBILITIES OF THE BOND ISSUER
• RIGHTS AND OBLIGATIONS OF THE BONDHOLDER
• BIRTH OF A BOND
  • Issuance mechanism
  • Issue prospectus
  • Regulatory aspects
• BASIC CHARACTERISTICS OF THE PRODUCT AND ISSUE CONTRACT
• TYPES OF PLAYERS AND OTHER PARTIES INVOLVED IN THE BOND MARKET
• DESCRIPTION OF DISINTERMEDIATION, INTERNATIONAL DEVELOPMENT AND EVOLUTION OF THE BOND MARKET
• MIFIR AND MIFID I AND II IMPACT AND CONSTRAINTS IN TERMS ON MARKET ORGANISATION AND TRANSPARENCY
• PRINCIPLES OF BOND PRICING
• PRACTICAL ASPECTS OF AND PROBLEMS INVOLVED OF MEASURING A BOND YIELD
• THE YIELD CURVE: HOW IT WORKS AND INTRODUCTION TO ANALYSIS

This training is offered in blended-learning, you will receive access to a preparatory course in e-learning 5 days before the course.